The Indian stock market indices, Sensex and Nifty 50, are likely to open on a tepid note Friday tracking weakness in global peers. The Gift Nifty also indicates a muted start for the Indian benchmark equity indices.
The Nifty 50 index touched a fresh all time high of 22,993 levels, just a few points away from the psychological 23,000 mark, and closed with gains of around 370 points on May 23. It formed a strong bullish candle on a daily scale and has been making higher highs from the last nine trading sessions.
“Derivatives data and price set up suggests that now it has to hold above 22,850 zones for an up move towards 23,200 then 23,350 zones whereas supports are shifting higher at 22,850 then 22,700 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today – May 24
Meanwhile, volatility is increasing ahead of the election phases which could cause a bumpy ride in the market for the time being. Taparia believes India VIX needs to fall below 16-18 zones for stability and a smoother ride in the market.
Option data suggests a broader trading range in between 22,500 to 23,500 zones while an immediate range between 22,700 to 23,200 levels.
The Bank Nifty index witnessed strong buying interest on Thursday as it surged over 1,000 points from lower levels.
“It has taken support from the lower band of the rising channel and inched higher. It formed a strong Bullish candle on the daily scale with support of 50 DEMA which indicates that the bullish momentum should continue. Now it has to continue to hold above 48,500 zones for an up move towards 49,250 then 49,500 zones while on the downside the support has shifted higher at 48,250 then 48,000 levels,” Taparia added.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 24
Chandan Taparia has recommended three stocks to buy today, May 24. According to him, these stocks are technically placed to see a decent upmove. These three stocks to buy today include, Cochin Shipyard, Bharti Airtel and Bharat Electronics (BEL).
Cochin Shipyard | Buy | TP: ₹2,000 | Stop Loss: ₹1,830
Cochin Shipyard is one of the strongest shipping companies and outperformed this year so far. Cochin Shipyard shares are witnessing strong follow up buying after the consolidation and any minor declines are being bought into. Tailwind from the entire sector is adding speed to this stock and it is consistently trading in the northward direction.
Bharti Airtel | Buy | TP: 1,475 | Stop Loss: ₹1,325
Bharti Airtel share price has perfectly respected its 50 DEMA and consistently shifting base higher. The recent development in the telecom sector is going to be a positive trigger for the Bharti Airtel stock and it can be seen strongly holding above its previous hurdle of ₹1,350 levels and gave a recent consolidation breakout of the last five sessions.
BEL | Buy | TP: ₹305 | Stop Loss: ₹280
Defence space is strongly holding with fresh buying visible at higher zones. Follow up after the weekly consolidation breakout along with volumes in the last two weeks is adding to the base of the BEL shares.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 24 May 2024, 08:09 AM IST
